A PRO assessment was performed on the four identified risks. For each of the risks the estimated cost of mitigating the risk (investment) was determined;
A PRO assessment was performed on the four identified risks. For each of the risks the estimated cost of mitigating the risk (investment) was determined; the enterprise net present value (NPV) protected was calculated given the investment was made; and, the investment productivity (a.k.a return on investment) for each investment was calculated. The following table summarizes this information.
| Risk | Investment $ (Millions) | NPV $ (Millions) | Investment Productivity |
| Unreported Adverse Effects | 2 | 120 | 55.70 |
| FDA Hold for Adverse Effects | 15 | 335 | 18.65 |
| Delay in Clinical Trial Enrollment | 4 | 550 | 128.50 |
| Rewrite FDA Submission | 3 | 88 | 25.10 |
- If the top three most productive investments were approved for implementation, what would be the total investment and how much enterprise value would be protected as measured in NPV?
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Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
